Construction Financing
Building your dream home from the ground up is an exciting journey. At Mutual of Omaha Mortgage, we offer construction financing solutions to help turn your vision into reality. Our One-Time Close Construction Loan (OTC) streamlines the entire financing process, combining your construction and permanent financing into one seamless loan.
Why choose Mutual of Omaha Mortgage for construction financing?
- One-Time Close Convenience: The OTC loan consolidates your construction and mortgage financing into a single transaction, meaning only one closing, one set of fees, and no need to requalify once construction is completed.
- Fixed Interest Rates: Your interest rate is locked in at closing and remains the same for both the construction and permanent loan phases, protecting you from market fluctuations
. - Interest-Only Payments During Construction: While your home is being built, you only make interest payments based on the funds drawn for construction. Full mortgage payments begin once your home is finished
. - Reduced Closing Costs: By bundling your construction loan and permanent mortgage into one, you save on closing costs, which can be reinvested into your home
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How the One-Time Close Construction Loan works
Single Loan Approval
This loan covers the cost of land, construction, and permanent financing in one transaction. You sign one set of documents upfront, and your builder receives disbursements as construction progresses.
No Requalification Needed
Once your loan is approved and closed, there’s no need to requalify after construction is completed.
Construction Timeline
The construction phase typically lasts 9-12 months. During this period, you’ll make interest-only payments until construction is complete.
Benefits of Our One-Time Close Construction Loan
Simplicity
With one loan and one closing, you can avoid the hassle of managing multiple loans.
Cost Savings
Eliminate extra closing costs by combining your construction loan and permanent mortgage into a single transaction.
Security
You’re protected from rising interest rates since your loan terms are locked in at the initial closing.
Convenience
No need to requalify when your home is complete. Your construction loan automatically converts into a permanent mortgage.
Steps to secure a construction loan
Consult with a Construction Loan Specialist
Speak with one of our experienced loan officers to determine the best financing option for your new home project.
Get Pre-Approved
We’ll review your financial situation and help you get pre-approved for a construction loan, so you know your budget before breaking ground.
Choose Your Builder
Work with a licensed, approved builder to finalize the plans and timeline for your new home.
Close on Your Loan
Once approved, you’ll close on the OTC loan and begin construction. Payments to your builder will be made as milestones are reached.
Move-In
When construction is complete, your loan converts to a permanent mortgage, and you can start enjoying your new home.
Unique features of Our One-Time Close Construction Loan
Eligible Properties: Includes site-built homes, modular homes, and double-wide manufactured homes.
Down Payment Options: FHA financing as low as 3.5%, VA financing up to 100%, and USDA loans with 100% financing.
No Payments During Construction: You won't have to make mortgage payments during the construction phase, giving you financial flexibility.
Construction Loan FAQs
Yes! Our One-Time Close Construction Loan can be used for site-built homes, modular homes, and double-wide manufactured homes.
You will only make interest payments on the amount drawn for construction. Full mortgage payments begin once construction is complete.
If construction takes longer than expected, we’ll work with your builder to ensure all timelines are met. However, there are no additional closing costs or requalification needed.
Yes, with the OTC loan, you can lock in your interest rate at closing, which applies to both the construction and permanent mortgage phases.
Additional Resources
5 Ways Real Estate Agents Can Be Trusted Advisors During the Retirement Years
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